Update: Potential EWT Count

Earlier this month, I shared with you a potential EWT count calling this bullish move may be close to its apex. At the time, the stochastics were midway and on the move up. It has been about 3 weeks since that call. The market has marched relentlessly towards its peak. The stochastics on the weekly are above the overbought zone. Too many things lining up calling for a top.

But, can a Jackal call top? No. The wolves will when they will. The weekly stochastics are slowly pinching but no damage has been done yet. We do not have a weekly lower low even though this week finished in red.

However the warning is there for everyone to see. As I mentioned then, I am sitting in cash in my long term accounts which I believe will be more valuable than equity if the market follows what looks imminent from the count.

Divergences are rare on the weekly but they do happen. I think there is room for one in this case too.

I lost a sizable portion of my 401K in the 2007 meltdown. These 5 years have taught me to be careful. Be safe!